About The Loonie Adventures of a Forex Noob

“Huck loves her bucks!” I always say. The problem, of course, is how to make those bucks!! In this blog, I'll be posting my adventures as I traverse the forex world, while trying to catch some pips along the way. To do this, I will make use of classical charting methods as well as develop my own mechanical system. Not only will I talk about FX, but I'll also share how my day went along with any currency trade updates. Hopefully, by the end of this tale, I'll be able to achieve my goal of becoming a consistently profitable foreign exchange trader.

HLHB Weekly Update – July 2, 2012

Definitely not a good week for me. Not only did one of my favorite Hollywood couples split, but I also lost on my GBP/USD trade and HLHB Trend-Catcher system. Boo!

HLHB Trend-Catcher

Here’s how my HLHB Trend-Catcher system fared last week:

1. Short at 1.2539. Closed due to new crossover at 1.2505. +34 pips.
2. Invalid long signal since RSI did not cross the 50.0 level.
3. Short at 1.2502. Closed due to new crossover at 1.2517. -15 pips.
4. Long at 1.2517. Closed due to new crossover at 1.2488. -29 pips.
5. Short at 1.2488. Trailing stop hit at 1.2493. -5 pips.
6. Long at 1.2496. Closed due to new crossover at 1.2486. -10 pips.
7. Short at 1.2486. Closed due to new crossover at 1.2503. -17 pips.
8. Long at 1.2503. Closed due to new crossover at 1.2494. -9 pips.
9. Invalid short signal since RSI did not cross 50.0 level.
10. Long at 1.2494. Trailing stop hit at 1.2475. -19 pips.
11. Short at 1.2460. Closed due to new crossover at 1.2448. +12 pips.
12. Invalid long signal since RSI did not cross the 50.0 level.

Total loss: -53 pips

Overall, my system generated 12 signals but only two ended up as winners. They weren’t able to offset the losses that the Trend-Catcher incurred, which led to the system closing the week with a 53-pip loss.

More than the loss though, I’m more upset that the Trend-Catcher didn’t catch the rally on EUR/USD. Had signal 12 been valid, my demo account could’ve ended the week in the green. Oh well, I guess I can’t catch them all!

GBP/USD Trade

As you all probably know by now, my GBP/USD didn’t work out so well. When price broke through support, I closed my trade early to avoid more losses. It was the right decision as price eventually hit my original stop loss.

Closed at 1.5530: -60 pips / -0.85%

What broke really broke my heart was that price soon reversed and rallied strongly after I had closed. Apparently, the EU summit caused a huge sentiment shift. Forex Gump wrote a very informative blog post on the result of the EU summit, you should check it out too! If I just had a wider stop and trusted my analysis better, I would be smiling right now instead of feeling down!

That wraps it up for this blog post. Hopefully, the upcoming week will be kinder to me!